(Reuters) - The United States urged countries on Tuesday to think twice about signing up to a new China-led Asian development bank that Washington sees as a rival to the World Bank, after Germany, France and Italy followed Britain in saying they would join.The concerted move by U.S. allies to participate in Beijing's flagship economic outreach project is a diplomatic blow to the United States and its efforts to counter the fast-growing economic and diplomatic influence of China.Europe's participation reflects the eagerness to partner with China's economy, the world's second largest, and comes amid prickly trade negotiations between Brussels and Washington.European Union and Asian governments are frustrated that the U.S. Congress has held up a reform of voting rights in the International Monetary Fund that would give China and other emerging powers more say in global economic governance.Washington insists it has not actively discouraged countries from joining the new bank, but it has questioned whether the Asian Infrastructure Investment Bank (AIIB) will have sufficient standards of governance and environmental and social safeguards.

Apparently no one choked to death laughing at the bald faced irony of that last statement.

Make no mistake, there is a monstrous power shift underway right now in the economic sphere and we are taking it on the chin.

The lines have been drawn and China is actively and rapidly manouvering to get the U.S.Dollar replaced as the worlds reserve currency.

This little drama unfolding here is just the latest move in that drama.

I will leave it to folks who follow these things to explain it better but this has immense ramifications down the line.
The Federal Reserve has been put on notice, this is basically a vote of no confidence in them.

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